Hey all

I hope this is the correct place for this post..

I just started (yesterday) on a module called Financial Maths, we have a useles lecturer who doesn't give us the help thats needed. Also I have to play catchup as I'm not doing a finance degree. Anyway, a tutorial question that makes no sense.

1) A UK Gilt currently has exactly 8 years to maturity, its annual redemption yield is 35% and its annual coupon payment is 70, paid in equal six-monthly installments, calculate the current market price of this gilt.

What I've done:
I've noticed that t = 8 here, and per year there is an intrest of 35% and an initial? payment of 70.

I have two formulas that I learn't yesterday of which, I don't think either can help:

V2 = V1 x e^int( r(t) dt) between the limits of T2=8 and T1=0.

v(t+n) =v(t) x (1 + rho)^n

Any help is appreciated.